Unite with Fellow Investors
Choose the Best Attorney
Follow Case Progress
id: 340, Created by Stan Vick, Scout
What do I get by joining?
- You will get case updates and receive a payout in case of success
- If you would like to actively participate, you will be connected to the attorney
- No, you do not pay anything out of your pocket neither to us nor to attorney
D. New JerseyCourt
On February 1, 2022, PayPal released disappointing full-year 2021 results reporting that its NNAs were only 49 million for 2021, less than the guidance of 50 million it initially provided in February 2021.
The Company admitted that “in connection with the increased use of cash incentive campaigns throughout 2021, it identified 4.5 million accounts that “it” believes were illegitimately created,” and that as a result, the Company changed course on some of its customer acquisition strategies including incentive-led campaigns in the Q4 2021.
Further, because the Company was evolving its customer acquisition and engagement strategy, PayPal now expects only 15-20 million net new customer accounts for 2022 and that the Company “no longer believes that the 750 million medium-term account aspiration it set last year, is appropriate.”
On this news, PayPal’s stock price fell almost 25% on February 2, 2022, and the Company lost around $50 billion of its capitalization.
Taking the history of all PayPal's statements and the revealed facts into account, investors have every reason to suspect that the Company has committed gross negligence in its strategy and misinformed the shareholders, damaging them.
Failure to Disclose,
Breach of Fiduciary duty,
Shock Event Date
01 February 2022